PINNACLE Technology, the Scottish telecoms and IT services group, saw revenues rise by 68% but pre-exceptional profits fall by 50% in a first half of transition.
The Stirling-based group with an Alternative Investment Market listing now styles itself a "converged managed services provider of cloud-based technology solutions", with revenues from its core telecoms business falling from 82% a year ago to 48%.
That follows two acquisitions in the IT services and security sectors last October which now account for the other half of group turnover up from £3.8 mil-lion to £6.4m. Recurring revenues were steady at 86%. The pre-tax loss jumped from £132,000 to £498,000, after acquisition costs of £284,000 and higher amortisation of £232,000, though underlying profits stayed positive at £25,357, down from £50,787.
Pinnacle has offices in Glasgow, Paisley and Dunfermline and employs around half of its 62 staff in Scotland.
Alan Bonner, chief executive, told The Herald: "We intend to grow the business across the UK but our network operations and technical expertise will be based in Scotland." He said the group was demonstrating it could cross-sell its range of IT and telecom services to larger companies, and was building its credibility in the City.
"I think we have got a lot of support because we have got a reputation for delivery. When I did the first half-year results in 2008 our turnover was £720,000."
Chairman Bill Allan, the former Thus chief executive, said the results reflected the success of the strategy (which saw the group renamed in April from Pinnacle Telecom). He added: "The majority of the exceptional costs relating to acquisitions and integration have been incurred in this six-month period. The board now looks forward to unlocking the potential from the combined customer base and service portfolio."
Pinnacle is providing telecom support for BBC International at the London Olympics, and in March used a "small fundraising" to fund working capital for the project and the initial costs of the two acquisitions.
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